30% ruling Netherlands 2026: thresholds, rules, and changes

Last verified: 2026-03-22

What you need to know: key numbers for 2026

Detail	2026 figure
Tax-free allowance	Up to 30% of gross salary
Minimum salary (standard)	EUR 48,013 per year
Minimum salary (under-30 with master's)	EUR 36,497 per year
Salary cap (Balkenende norm)	EUR 262,000 per year
Maximum tax-free amount	EUR 78,600 per year
Maximum duration	5 years
Partial non-resident status	Final year (transitional only)
2027 change	Allowance drops to 27%

Introduction

The 30% ruling (officially called the "expatregeling" or expat scheme) is one of the most valuable tax benefits available to skilled workers who move to the Netherlands. It allows your employer to pay up to 30% of your gross salary as a tax-free allowance, intended to cover the extra costs of living abroad. If you are also looking into banking options in the Netherlands, the ruling may influence which accounts work best for your situation.

This guide covers the 2026 tax year and is aimed at expats, international workers, and employers in the Netherlands. Whether you are considering a move or already benefit from the ruling, you will find the current thresholds, eligibility rules, and upcoming changes explained in plain language. For related reading, browse our tax guides for European expats.

The 30% ruling has undergone significant changes in recent years, and 2026 is an important transitional year. From 2027, the allowance will drop from 30% to 27%. Additionally, 2026 is the final year for the partial non-resident tax liability transitional arrangement. Understanding these changes now will help you plan ahead.

What is the 30% ruling?

The 30% ruling is a Dutch tax benefit designed to attract skilled foreign workers. When you qualify, your employer can pay up to 30% of your gross salary as a tax-free reimbursement for "extraterritorial costs," which are the additional expenses of living and working outside your home country. These costs might include things like temporary housing, language courses, travel to your home country, and the generally higher cost of settling in a new country.

In practice, this means a significant portion of your income is exempt from income tax. For example, if you earn EUR 70,000 per year, up to EUR 21,000 could be paid tax-free under the ruling. You pay income tax only on the remaining EUR 49,000. This can result in thousands of euros in annual tax savings.

The ruling is administered by the Belastingdienst (Dutch Tax Administration). Your employer must apply for it on your behalf, and both you and your employer must meet specific conditions.

Eligibility requirements for 2026

To qualify for the 30% ruling in 2026, you must meet all of the following conditions.

Recruited from abroad

You must have been recruited or transferred from abroad to work in the Netherlands. This means you were living outside the Netherlands before starting your Dutch employment. Specifically, you must have lived more than 150 kilometres from the Dutch border for at least 16 of the 24 months before your first working day in the Netherlands. This is commonly known as the "150-kilometre rule." Cities like Antwerp, Dusseldorf, and parts of Belgium and western Germany fall within this 150-kilometre zone, so residents of these areas typically do not qualify.

Specific expertise

You must possess specific expertise that is scarce or not readily available in the Dutch labour market. The Belastingdienst assesses this primarily through salary thresholds rather than evaluating your specific skills. If your salary meets or exceeds the minimum threshold, you are deemed to have the required expertise.

Salary thresholds for 2026

The salary thresholds are adjusted annually for inflation. For 2026, the minimum taxable salary requirements are:

Category	Minimum annual taxable salary (2026)
Standard requirement	EUR 48,013
Under 30 with a qualifying master's degree	EUR 36,497
Scientific researchers at qualifying institutions	No minimum
Medical specialists in training (AIOS)	No minimum

These amounts refer to your taxable salary after the 30% deduction has been applied. In other words, if you use the full 30% allowance, your total gross salary must be approximately EUR 68,590 (standard) or EUR 52,139 (reduced threshold) for the net taxable portion to meet the minimum.

The reduced threshold for employees under 30 applies only if you hold a master's degree from a Dutch university or an equivalent foreign qualification. You qualify for this reduced threshold until the month you turn 30.

Employment relationship

You must be employed by a Dutch company or Dutch branch of a foreign company. The ruling does not apply to self-employed workers, freelancers, or directors who are majority shareholders (DGA) of their own company, although there are some exceptions for DGAs in specific circumstances.

The Balkenende norm: salary cap

Since 2024, the 30% ruling is subject to a salary cap based on the WNT norm (also known as the Balkenende norm), which is the maximum salary for senior government officials. In 2026, this cap is set at EUR 262,000.

The 30% tax-free allowance applies only to the first EUR 262,000 of your salary. Any income above this amount is taxed at the normal Dutch income tax rates. This means the maximum possible tax-free amount under the ruling in 2026 is EUR 78,600 (30% of EUR 262,000).

For employees who were already receiving the 30% ruling before 2024, a transitional arrangement applied in 2024 and 2025. However, starting from 1 January 2026, the salary cap applies to all 30% ruling recipients without exception.

How expats are affected: key considerations

Dutch income tax context

The Netherlands taxes income across three "boxes." Box 1 covers employment and business income, with 2026 rates of 35.75% (up to EUR 38,883), 37.56% (EUR 38,883 to EUR 78,426), and 49.5% (above EUR 78,426). Box 2 covers substantial shareholdings at 24.5% (up to EUR 68,843) and 31% above that. Box 3 taxes savings and investments at a flat 36% on a deemed return.

The 30% ruling reduces your taxable income in Box 1, which can push a significant portion of your earnings into a lower bracket. This is where the real savings come from.

Partial non-resident tax liability: final year in 2026

Until recently, 30% ruling holders could opt for "partial non-resident tax liability." This meant you were treated as a non-resident for Box 2 and Box 3 purposes, so your foreign investments, savings, and substantial shareholdings were exempt from Dutch taxation.

This benefit was abolished for new applicants from 1 January 2025. However, a transitional arrangement exists: if you were awarded the 30% ruling in the last pay period of 2023 or earlier, you can still use partial non-resident tax liability through 31 December 2026. This is the final year.

From 2027 onwards, all 30% ruling beneficiaries must declare their worldwide assets in Box 2 and Box 3, regardless of when they received the ruling. If you currently benefit from this arrangement, 2026 is the time to review your investment structure and consider the tax implications of the change. Our guide to investing in the Netherlands as an expat covers the main options available to you.

Interaction with tax treaties

The Netherlands has an extensive network of double tax treaties. If you receive income from your home country (such as rental income, dividends, or pension payments), a tax treaty may prevent double taxation. The loss of partial non-resident status from 2027 makes understanding your applicable tax treaty more important than ever.

The 2027 reduction: from 30% to 27%

Starting in 2027, the maximum tax-free allowance will drop from 30% to 27% of gross salary. This 27% rate will apply for the entire five-year duration of the ruling, regardless of when you first received it.

For employees who started receiving the ruling in 2024 or later, a stepped structure was originally proposed (30% for 20 months, 20% for 20 months, 10% for 20 months), but this plan was scrapped. Instead, the government settled on a flat 27% for five years from 2027 onwards.

If you are currently in the 30% ruling window, your rate will switch to 27% on 1 January 2027. There is no grandfathering of the 30% rate for existing recipients.

How to apply

The application process involves both the employee and the employer.

Step 1: Employer submits the request. Your employer must file a joint application with the Belastingdienst using the official form ("Verzoek loonheffingen 30%-regeling"). Both you and your employer sign this form.

Step 2: Gather supporting documents. You will typically need your employment contract, proof of previous residence abroad (such as deregistration from your former country or utility bills), your diploma or degree certificate (if applying under the reduced threshold), and a copy of your passport or ID.

Step 3: Submit within four months. The application should ideally be submitted within four months of your start date. If you apply within this window, the ruling can be applied retroactively from your first day of employment. If you apply later, the ruling starts from the first day of the month after the application is received.

Step 4: Wait for the decision. The Belastingdienst typically processes applications within several weeks to a few months. Once approved, you receive a ruling letter ("beschikking") confirming the start and end dates.

Step 5: Employer adjusts payroll. Once the ruling is granted, your employer applies the 30% tax-free allowance through the payroll system.

Duration and renewal

The 30% ruling runs for a maximum of five years. This period is reduced by any time you previously lived or worked in the Netherlands. For example, if you studied in the Netherlands for two years before leaving and returning as an employee, those two years may be deducted from your five-year entitlement.

The ruling ends automatically if you leave your job. However, if you find a new employer within three months, you can transfer the ruling to the new employment. Your new employer must submit a new application, and the remaining duration carries over.

Common mistakes expats make

1. Not applying within four months. If your employer misses the four-month window, you lose the retroactive benefit. The ruling will only apply from the month after the late application, costing you months of tax savings.

2. Ignoring the salary threshold after job changes. Each time you change employers, your new salary must still meet or exceed the minimum threshold. A pay cut below EUR 48,013 (or EUR 36,497 for the reduced threshold) means losing the ruling.

3. Failing to plan for the end of partial non-resident status. If you have been excluding foreign assets from your Dutch tax return under the partial non-resident arrangement, you need to prepare for full worldwide reporting from 2027. This affects your Box 3 tax liability in particular.

4. Assuming the ruling continues automatically after changing jobs. The ruling does not transfer automatically. Your new employer must apply within three months, and there must be no gap of more than three months between employments.

5. Not accounting for the 2027 reduction. Many expats have budgeted based on the 30% rate. From 2027, the effective benefit drops by 3 percentage points. Review your financial planning now. Browse investing platforms available in the Netherlands to compare your options.

Frequently asked questions

Can I apply for the 30% ruling if I am already living in the Netherlands?

Generally, no. You must be recruited from abroad, and you must have lived more than 150 kilometres from the Dutch border for at least 16 of the 24 months before starting work. If you moved to the Netherlands on your own initiative before finding employment, you likely will not qualify.

Does the 30% ruling apply to my entire salary?

In 2026, the ruling applies to your salary up to the Balkenende norm of EUR 262,000. Any income above this cap is taxed normally. The maximum tax-free amount is EUR 78,600.

What happens to my 30% ruling when I change employers?

You can transfer the ruling to a new employer if you find new employment within three months. Your new employer must submit a fresh application to the Belastingdienst. The remaining duration of the original five-year period carries over.

Will the 30% ruling be abolished entirely?

As of March 2026, there are no announced plans to abolish the ruling entirely. However, it will be reduced to 27% from 2027. The Dutch government periodically reviews the scheme, and further changes are possible in future tax plans.

Can my partner also benefit from the 30% ruling?

The 30% ruling applies to the individual employee, not their partner. However, if your partner also finds qualifying employment in the Netherlands and meets the eligibility criteria independently, they can apply for their own 30% ruling.

Do I still need to file a Dutch tax return if I have the 30% ruling?

Yes. The 30% ruling is applied through payroll, but you may still need to file an annual income tax return (aangifte inkomstenbelasting), especially if you have other income, deductions, or assets to declare. From 2027, this becomes even more important as partial non-resident status ends for all recipients.

How does the 30% ruling interact with Box 3 taxation?

If you still qualify for the partial non-resident transitional arrangement in 2026, your foreign savings and investments are excluded from Box 3. From 2027, all 30% ruling holders must report their worldwide assets in Box 3, which is taxed at 36% on a deemed return of approximately 6% on investments (after the EUR 59,357 per person exemption).

Important disclaimer

This article is educational content, not tax or financial advice. Tax rules are complex and change frequently. Your individual situation may differ significantly from the general information presented here. Always consult a qualified tax adviser before making tax-related decisions. Capmap is not a tax advisory service. For more guidance, explore our guides and articles.

Fees, rates, and regulations may change. Verify current details on the official government website at belastingdienst.nl. Last verified: 2026-03-22.